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Indonesia firm exports its product to South Korea. The payment will be made for next three months. The amount of exports was $ 650,000. MR

Indonesia firm exports its product to South Korea. The payment will be made for next three months. The amount of exports was $ 650,000. MR X as the chief financial officer bought the put option to protect its asset-dominated foreign currency. The exercise or strike price is Rp 13,550/$, the put option premium is Rp 25/$ and the future spot rate is Rp 13. 425/$ . 



If the future spot rate is correctly predicted, what should the firm do? And what future spot rate is the firm indifferent between the put option and spot market?

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